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An applicant for a Labuan insurance-related license may carry on business as a Labuan insurance broker, Labuan insurance manager or Labuan underwriting manager.
The activities of the Labuan insurance-related business are governed by the Labuan Financial Services and Securities Act 2010.
Labuan Insurance Broker
The permitted activities of a licensed Labuan Insurance Broker are as follows:
- To arrange Labuan insurance business on behalf of prospective or existing policy owners and arrange Labuan reinsurance business on behalf on behalf of prospective or existing policy owners and arrange Labuan reinsurance business on behalf of any insurer seeking reinsurance.
- May carry on financial planning activities as well.
- Prohibited from dealing with residents (except for high-net worth individuals, reinsurance and others as defined by Labuan FSA from time to time) and broke for direct Malaysian risks.
For the eligibility of the applicant, the following needs to be submitted:
- Provide a business plan covering the business intentions, types of services to be provided, target market, revenue projections, expected profit and loss, and manpower, including the equity structure of company in regard to the percentage of shareholding.
- Demonstrate the existence of both adequate financial resources and insurance coverage.
- Subject to the merit of each application, the applicant may be required to provide additional information to Labuan FSA.
- Applicant must be a member of the Labuan International Insurance Association.
- Applicant must provide a letter of guarantee or undertaking from the parent company to Labuan FSA.
- The person in control, director and PO of a Labuan insurance broker must be fit and proper persons and shall not be subject to any adverse report from any reliable sources.
The annual license fee payable for Labuan Insurance Broker License is RM20,000 upon the grant of its license. The subsequent payment of annual license fee payable on or before 15 January of each year.
Maintaining a minimum paid-up capital or working funds with a bank in Labuan amounting to RM300,000 or its equivalent in any foreign currency.
Labuan Insurance Manager
Permitted activities of a Labuan Insurance Manager are as follows:
Provide management or administration services related to Labuan insurance business but does not include a Labuan underwriting manager.
For the eligibility of the applicant, the following needs to be submitted:
Provide a business plan covering the business intentions, types of services to be provided, target market, revenue projections, expected profit and loss, and manpower, including the equity structure of company in regard to the percentage of shareholding.
- Applicant must be a member of the Labuan International Insurance Association.
- Applicant must provide a letter of guarantee or undertaking from the parent company to Labuan FSA.
- Appointment of any person in control, director or principal officer (PO) of a Labuan insurance broker must obtain prior approval from Labuan FSA. Notwithstanding, Labuan insurance brokers that are established as a branch are not required to obtain approval on the appointment of their directors.
- The person in control, director and PO of a Labuan insurance manager must be fit and proper persons and shall not be subject to any adverse report from any reliable sources.
The annual license fee payable for Labuan Insurance Broker License is RM20,000 upon the grant of its license. The subsequent payment of annual license fee payable on or before 15 January of each year.
Maintaining a minimum paid-up capital or working funds with a bank in Labuan amounting to RM300,000 or its equivalent in any foreign currency.
Labuan Underwriting Manager
Permitted activities of a Labuan Underwriting Manager are as follows:
Provide underwriting services, including the administration of the business, to one or more Labuan insurer.
For the eligibility of the applicant, the following needs to be submitted:
- Provide a business plan covering the business intentions, types of services to be provided, target market, revenue projections, expected profit and loss, and manpower, including the equity structure of company in regard to the percentage of shareholding.
- Applicant must be a member of the Labuan International Insurance Association.
- Applicant must provide a letter of guarantee or undertaking from the parent company to Labuan FSA.
- Appointment of any person in control, director or principal officer (PO) of a Labuan insurance broker must obtain prior approval from Labuan FSA. Notwithstanding, Labuan insurance brokers that are established as a branch are not required to obtain approval on the appointment of their directors.
- The person in control, director and PO of a Labuan insurance manager must be fit and proper persons and shall not be subject to any adverse report from any reliable sources.
The annual license fee payable for Labuan Insurance Broker License is RM20,000 upon the grant of its license. The subsequent payment of annual license fee payable on or before 15 January of each year.
Maintaining a minimum paid-up capital or working funds with a bank in Labuan amounting to RM300,000 or its equivalent in any foreign currency.
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